FDK to Cut 4,800 Jobs

FDK Corp., an affiliate of Japanese electronics firm Fujitsu Ltd., said on Feb. 27 it would cut 4,800 jobs or 40% of its workforce at home and abroad to cope with a steep business downturn.

The electronic component and battery maker will suspend production at one of its three plants in Japan.

FDK revised downward its group earnings projections for the year to March as the global economic downturn sapped demand for its parts for use in products such as liquid crystal display televisions and cellphones. The company forecast a group net loss of 11.7 billion yen (US$119 million), compared with a 950 million yen loss estimated four months ago. Its operating revenue for the year was estimated at a loss of 1.4 billion yen, compared with a previously estimated gain of 100 million yen.

The company, which is owned nearly 40% by Fujitsu, said it would need to book a special loss of eight billion yen in restructuring-related expenses. Fujitsu itself said last week it would transfer its struggling hard disk drive business to rival Toshiba Corp., a deal that will push it deeper into loss this year than previously expected.